Withdrawing some cash
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Withdrawing some cash We have a member that would like to withdraw some of the profits that have built up in her account over the years but not withdraw from the club. Is that possible and if so how do you do it. Karen: Is your question how to insert the partial withdrawal in BIVIO? It is relatively simple. Use the Help menu for guidance. If your question is deeper than that, Your bylaws should spell out how partial withdrawals are to be done. if they don’t then the club needs to decide a few things like: 1. Will the member be given cash or stock? Cash is easier for the treasurer in my opinion. 2. If cash, does the club have to sell stock to be able to pay the member? If there are any costs involved, the withdrawing member should pay the costs - unless your bylaws indicate otherwise. Don’t sell a winner! Selling a loser distributes the loss which will appear on next year’s K1 and possibly offset any realized gains. 3. Partial withdrawals have limitations - I believe the member cannot withdraw an amount greater than what they have contributed. So run that report in BIVIO to determine total contributions to date. 4. Club should probably vote on cash vs stock, and on valuation date to be applied. In this crazy market valuations fluctuate a lot.....pick a date - perhaps the date the request is received in writing or date of monthly meeting, etc. Make that the date for all future partial withdrawals as well. 5. Consider a “transaction fee” - perhaps 1% - 3% of amount withdrawn. If not in by laws, then club should vote on this. This is to prevent members from treating their club’s balance like a checking account and driving the treasurer crazy. OR consider placing a limit on number of partial withdrawals per member per year. Again your bylaws should spell that out. I have likely missed something - so please read other responses as well!!!!! Sent from my iPhone Sheryl Story > On Mar 10, 2020, at 5:50 AM, Karen Wilson via bivio.com <user*16610800001@bivio.com> wrote: > > We have a member that would like to withdraw some of the > profits that have built up in her account over the years but > not withdraw from the club. Is that possible and if so how > do you do it. A member should be allowed to withdraw any amount they want. Karen: I've done several partial withdrawals for our club members. I don't understand why it would be limited to the amount a member has contributed. That's not ever been something I've even looked at. Can you tell me why that might be? We only do payouts in cash, no stock. Kim Potter, Treasurer BI Brighton Model Club Michigan Sent via the Samsung Galaxy S10, an AT&T 5G Evolution capable smartphone -------- Original message -------- From: "Sheryl Story via bivio.com" <user*7608900001@bivio.com> Date: 3/10/20 9:41 AM (GMT-05:00) To: club_cafe@bivio.com Subject: Re: [club_cafe] Withdrawing some cash Is your question how to insert the partial withdrawal in BIVIO? It is relatively simple. Use the Help menu for guidance. If your question is deeper than that, Your bylaws should spell out how partial withdrawals are to be done. if they don't then the club needs to decide a few things like: 1. Will the member be given cash or stock? Cash is easier for the treasurer in my opinion. 2. If cash, does the club have to sell stock to be able to pay the member? If there are any costs involved, the withdrawing member should pay the costs - unless your bylaws indicate otherwise. Don't sell a winner! Selling a loser distributes the loss which will appear on next year's K1 and possibly offset any realized gains. 3. Partial withdrawals have limitations - I believe the member cannot withdraw an amount greater than what they have contributed. So run that report in BIVIO to determine total contributions to date. 4. Club should probably vote on cash vs stock, and on valuation date to be applied. In this crazy market valuations fluctuate a lot.....pick a date - perhaps the date the request is received in writing or date of monthly meeting, etc. Make that the date for all future partial withdrawals as well. 5. Consider a "transaction fee" - perhaps 1% - 3% of amount withdrawn. If not in by laws, then club should vote on this. This is to prevent members from treating their club's balance like a checking account and driving the treasurer crazy. OR consider placing a limit on number of partial withdrawals per member per year. Again your bylaws should spell that out. I have likely missed something - so please read other responses as well!!!!! Sent from my iPhone Sheryl Story > On Mar 10, 2020, at 5:50 AM, Karen Wilson via bivio.com <user*16610800001@bivio.com> wrote: > > We have a member that would like to withdraw some of the > profits that have built up in her account over the years but > not withdraw from the club. Is that possible and if so how > do you do it.
Thank you for the clarification on withdrawal amounts, Laurie - I said contributions, but meant tax basis. There is no limit - just a tax consequence.
Sheryl Story
-----Original Message-----
From: Laurie Frederiksen <laurie@bivio.biz> To: The Club Cafe <club_cafe@bivio.com> Sent: Tue, Mar 10, 2020 10:35 am Subject: Re: [club_cafe] Withdrawing some cash
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